The Federal Government’s new gas supply initiatives are a chance to bring stability to the industry, says the head of a prominent industry association.
Yesterday, the government announced it was taking new measures to protect Australia’s domestic gas supplies, which would include bringing forward the scheduled review of the Australian Domestic Gas Security Mechanism (ADGSM), considering the establishment of a national gas reservation scheme, reviewing current pipeline regulations and increasing industry transparency.
Australian Pipelines and Gas Association (APGA) CEO Steve Davies said the measures were a significant step in creating more industry stability.
“Issues affecting gas supply in Australia cannot be addressed with a single policy response and [yesterday’s] announcement recognises that,” he said.
“We now have the opportunity to take a thorough look at the entire gas supply chain and to consider all options available to achieve affordable and reliable gas supplies domestically.”
When the measures were announced, Federal Minister for Resources and Northern Australia Matt Canavan said local gas supplies must continue to increase for prices to come down.
“Price and supply are inextricably linked,” said Senator Canavan.
“To put downward pressure on prices and shore up supply, we need more exploration and production.
“For too long we’ve seen some state and territory governments shelve onshore gas exploration for political purposes and the price we’ve paid is restricted supply and price creep.
“The plan outlined today tackles that and a host of other issues from all directions.”
Mr Davies supported Senator Canavan’s view and said the steps taken needed to beyond just market intervention.
“Ending the moratoriums on gas exploration and freeing up approvals processes will go some way towards increasing supply, but a key focus of the government’s investigations must be on accelerating investment in exploration and production of gas,” said Mr Davies.
“We look forward to working closely with the government on developing these measures.”
For more information visit the APGA website.
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